Solar raising the roof on jobs

Scott Maskin: For every three workers in the field, there are two people doing administrative work and one person selling.

The number of solar-power installations on residential and commercial facilities grew nationwide in 2013 – and soared at a faster-than-average rate in New York.

This state jumped from seventh to fifth overall, in terms of the number of solar jobs, with about 5,000 New Yorkers now earning their living in the solar field, according to the Solar Foundation, a Washington-based industry booster.

“The majority of the jobs are boots on the ground – folks directly involved with the installation of systems, their supervisors and project planners,” said Peter Olmsted, east coast regional director for national solar advocacy group Vote Solar.

Olmsted credited much of the job growth to Gov. Andrew Cuomo’s NY-Sun Initiative. Launched in 2012, Cuomo’s multifaceted public-private initiative offers $800 million in incentives, through 2015, with the goal of growing solar power installations and solar jobs. The initiative helped quadruple the number of statewide solar installations in 2013 versus two years earlier, according to Olmsted.

And the best part about the new jobs, he added, is they “can’t be outsourced.”

There are other government-driven incentive programs targeting solar growth. At the start of 2013, LIPA introduced a new program permitting the leasing of residential solar systems from third parties, while at the same time a statewide income tax credit was offered for people who lease solar systems.

These two programs – in addition to federal tax credits and increasing financing options – have helped catalyze a market that already had momentum, said David Schieren, CEO of EmPower Solar, an Island Park company that expects to grow its team from 50 to 70 employees this year.

In addition to helping local companies like EmPower offer more leasing and purchasing options, LIPA’s new program attracted to the region national solar companies with a leasing-focused business model. For instance, San Mateo, Calif.-based SolarCity established operations on Long Island in January 2013 – and has subsequently tripled its Long Island staff to 47 people, with plans to hire 15 more, and recently expanded into an 18,000-square-foot Hauppauge facility.

“We see New York as one of the major players in the solar market,” said Lee Keshishian, northeast regional vice president for the company, which also has operations in Albany and Westchester County.

Other solar insiders agree Long Island’s solar potential is tremendous.

“There are 1.1 million ratepayers on Long Island and there have been only about 7,700 solar installations,” said Scott Maskin, president of SUNation Solar Systems, which has offices in Oakdale and Southampton.

Though only 10 to 15 percent of Long Island residences are likely good candidates for solar power, that still equates to over 100,000 homes, Maskin noted – and that’s in addition to potential commercial customers.

“We believe we are entering a virtuous cycle,” said EmPower’s Schieren. “Solar is still less than 1 percent of the energy mix in the region, but we have the right trajectory and we are approaching the tipping point of mass adoption.”

For the past decade, SUNation, which has 40 employees, has also grown steadily, but cautiously.

“We’ve always subscribed to a smart, steady growth program,” Maskin said. “The incentive programs have been so topsy-turvy, and one thing that’s certain in this industry is change – there is always something new being thrown at us.”

For instance, at one point in 2013, LIPA’s rebate program ran out of money, stalling sales temporarily. “It makes you nervous when the rebate money disappears and you can’t sell your product for a month,” Schieren noted.

“Early on, it was a 3-1 ratio: for every three employees out in the field working, I had one administrative/salesperson,” Maskin said. “That has changed dramatically, and now it’s a 3-2-1 ratio. For every three in the field, there are two people doing administrative work and one person selling. Technology and the way we deploy solar have gotten more efficient, but things have gotten more cumbersome on the paperwork side.”

For installer positions, a construction background, particularly in the electrical field, is preferred.

3 comments

On the surface, getting a solar system on your roof from a solar leasing company for no money out of pocket might seem like a great deal, but here are the facts behind this type of rental financing. When you sign that solar lease contract you’ll be forfeiting the 30% federal tax credit which can typically be worth about $3,500 to $10,000. You’ll also be forfeiting any applicable cash rebate or other financial incentives. After collecting both the 30% federal tax credit and any cash rebate, the leasing company will also apply accelerated depreciation. Despite applying all of the financial incentives, on a $0 down 20 year solar lease, the leasing company will then charge you 20 years worth of leasing payments that many times will include up to a 2.9% annual payment escalator that will raise your monthly payment, every year for twenty years.
The leasing companies will try to convince you that a solar system requires a lot of maintenance and expensive insurance and costly monitoring when nothing could be further from the truth. Modern grid tie solar system require little to no maintenance and the bulk of any repairs are covered by the manufacturer’s and installer’s warranties. Solar panels and many inverters come standard with a 25 year warranty. Insurance can be added through your homeowner’s insurance policy with little to no increase in your premium and many solar systems come standard with built in, web based monitoring.
The bottom line with insurance, repairs and monitoring is that a leased solar system will typically cost you up to three times more than a purchased solar system, so it is actually you who will be paying for these services, not the leasing company. The leasing companies will try to convince you that these services are free but with a system cost that’s triple that of a purchase, these services are absolutely not free.
The leasing companies will try to convince you that a purchased system requires a lot of upfront costs and that their rental financing is the only $0 down option in town, which again is not true. There are plenty of $0 down loans available that even offer tax deductible interest and require no upfront costs. Solar leases and PPAs do not offer tax deductible interest.
What’s worse is that after paying 20 years worth of leasing payments that amount to triple the amount that you could have paid if you purchased your system instead, you won’t even own the solar system. It will still be the leasing company’s property. If you want to own it after paying your lease off, you will still need to buy it from the leasing company at fair market value. All this for only a 10 to 15% reduction in your electric bill. This is just the tip of the solar lease and PPA iceberg. For more information simply search the term solar lease disadvantages in any major search engine. There’s a lot you should consider before signing that airtight 20 year lease contract

Good luck ever selling your home with a solar lease or PPA attached to it. What potential home buyer will want to buy your home and take over your lease payments on a used solar system when they can own a brand new system and keep the 30% federal tax credit for many thousands of dollars less than your remaining lease payments.

Many of your observations are correct and there is a place in the market for consumers to purchase OR lease their solar energy systems. Not all consumers are able to monetize the tax credits, which requires a fairly significant upfront payment to float the credits, and enjoy the comfort of having a wrap warranty from a reputable company. My company offers both products and provide our customers with the proper information enabling them to make an educated decision which product is best for them and their finances. Whichever route a consumer selects, solar power makes sense 8 days a week compared to being subject to the whims of our local utilities.

I am leasing my solar panels in NYC. It was $0 downpayment, they took care of all the paperwork and provide full maintenance. My panels are producing more electricity than we are consuming. They provide a “performance guarantee”, so if panels produce less than promised, they write a check for the difference. They provide a free quote without a site visit, they see your roof through Google Earth. If you move, they will move the panels for free or you can transfer the lease to the new owners. They panels are fully insured, free of charge. They also provide warranty for the roof against any leaks. They do everything, I just pay my lease. You can go to http://www.sungevity.com You can use referral code 94755 so that you get $500 gift card.

About the Author

Bernadette Starzee is the special sections editor for Long Island Business News.